Electric vehicles are changing the future of automotive maintenance – TechCrunch
Go from internal combustion with electric power does more than reduce tailpipe emissions – it will fundamentally disrupt today’s automotive service and maintenance industry.
The decline is mathematical. With one-fifth the number of powertrain parts and almost total elimination of oil (a), the typical car dealership will experience a 35% drop in maintenance and service revenue, or about $ 1,300, for a electric vehicle versus an internal combustion engine vehicle over a period of five years (b).
But this disturbance is not equal. Two of the three main maintenance items – oil changes and brake maintenance (24% and 5%, respectively, of all maintenance transactions in the U.S. market) – are reduced or eliminated entirely by the shift electric vehicles (c).
Why are the brakes impacted? Electric vehicles often use a process called regenerative braking, which slows vehicles down while saving energy. The reduced pad and rotor wear is striking: some Toyota Priuses still run on their first set of brake pads after more than 100,000 miles of use, whereas you would normally assume the pads would be replaced after around 30,000 miles. .
Electric vehicles eat tires faster
One of the beneficiaries of electrification will be the tire, with multiple positive tailwinds: cars are rolling more and more every year. Vehicle miles traveled (VMT) are $ 3.25 trillion per year in the United States and are increasing by about 1% year over year. Because consumers keep cars longer (11.1 years on average), this translates into greater consumption of replacement tires throughout the period of ownership (d, e).
The other important growth driver for tires is the side effect of the powertrain: EVs consume much more tires than internal combustion vehicles. They are heavier and create almost instant torque on the line. You don’t have to search long to find a Tesla owner who replaced their tires after just 10,000 miles. One of our holding companies, Zohr, an on-demand tire replacement service, sees its electric vehicle customers returning for tire replacements 30% more frequently than traditional internal combustion vehicle owners. Although electric vehicles need less of a service shop, they will need to replace their tires more often.
Tires are also an essential line of defense in maintaining high fleet uptime. Aperia Technologies, another of our tire investments, can automatically inflate commercial tires from inside the wheel itself. Keeping a tire optimally inflated reduces heat build-up and sidewall flex, a leading cause of blowout. This avoids serious accidents, costly road service calls ($ 600 and more) and late delivery fines.
For opportunities in the tire market, we keep an eye on convenience and efficiency. But we’re also interested in the impact this has on the tire distribution ecosystem. This could mean a service company (like Zohr or Costco) branding its own tires in white, offering them on a subscription model, or offering a guaranteed uptime policy. We believe this will apply to both commercial and passenger vehicles, although possibly on different time horizons.
Glass and visibility
The main growth engines for the glass category are similar to tires (VMT and vehicle age increased). We include all visibility products (windshield glass, wipers, cleaning fluids, headlights and bulbs) in this group, as they are increasingly linked to on-board technology like sensors and cameras. As more vehicles add sensors for Advanced Driver Assistance Features (ADAS), they won’t work if they aren’t kept clean. One of our companies, Seeva, was built around visibility and sensor cleaning as a core technology in tomorrow’s vehicles.
Electric vehicles also have more demanding cooling needs. They must be incredibly efficient at cooling the passenger compartment, being careful not to affect the range of the vehicle. The first line of defense against these heat losses is more efficient glass structures and materials. Coupled with the growing trend for larger windshields and sunroofs – note that Tesla’s Model X panoramic glass costs $ 2,300 to replace – we are entering an era of big, beautiful, and expensive visibility.
Visibility is one of the most exciting areas for innovation and investment. Frankly, this has always been a profit center for suppliers like Valeo (which makes things like wiper arms, brushes, and motors) and chemical companies which sell consumables like windshield washer fluids. . The technology is likely to reduce the profits of these traditional areas – consider how a thin film or hard coating can mean fewer liquid sprays and fewer wiper blade passes – but overall will increase the total amount of potential for profit on the whole vehicle.
This is due to the much larger area that we now consider to be the area of visibility – which previously only meant the windshield and headlights will soon mean dozens of sensors and surfaces that require clear, verified visibility. machine.
The auto industry is highly interdependent, and this is no more felt than the $ 500 billion after-service market (f). We expect more significant investments in tires and visibility in the years to come. And you can bet that entrepreneurs who have already made their fortunes in quick lubricant stores will turn to tires and glass as the market moves under them.
a) ICE vs EV parts comparison (P115)
b) Alix partners
c) NPD study
d) 12-month trip total vehicle kilometers traveled, U.S. Department of Transportation traffic trends
e) IHS market research on the length of ownership of a car
f) Market size for after-sales services
Reilly Brennan, Founding General Partner of Trucks VC, will join TechCrunch onstage for TC Sessions: Mobility, a one-day conference on May 14, 2020 at the California Theater in San Jose, Calif., Which brings together the best and brightest engineers, investors, founders and technologists to talk about transportation and what’s on the horizon.